| Cabotage |
1. Water transportation, navigation or trade along the coasts, between the ports of one nation.
2 Inland freight movements confined with the national boundaries of a nation are also sometimes called cabotage. |
| Call |
1. A demand for early repayment of an obligation, or for the performance of a specific act under a contract.
2. A demand for the payment of money
3. The act of redeeming a bond earlier than the full term.
4. Short for "Call Option," a contract giving the holder the right to receive from the issuer a specified amount of a security at a specified price on or before a certain date.
5. Short for "Margin Call" - a call by a future or an options exchange, or by a broker to its clients, for additional collateral to that previously posted when the futures, options, or securities were purchased without posting their full value. |
| Call Money |
Money lent by banks on a short term basis which the bank, as lender, can "call" (demand payment at any time, usually on 24 hours notice.) |
| Capacity To Contract |
Legal competency to make a contract. |
| Capital Goods |
1. Durable goods which are used to produce other goods for consumption: for example machinery, equipment, buildings
2. Also, material used or consumed to produce other goods. |
| Capital Market |
The market for long term investment funds in the form of stocks, bonds, commercial paper etc. |
| Captain's protest |
A written sworn statement of the master of a vessel to the effect that damage suffered by the ship during the voyage was caused by storm or other peril of the sea, without any negligence or misconduct on his own part. |
| Cargo |
Merchandise hauled by transportation lines. |
| Cargo Agent |
An agent appointed by an airline or shipping line to solicit and process international air and ocean freight shipments. |
| Cargo Manifest |
A list of cargo being transported or warehoused. |
| Cargo Selectivity System |
(USA) An Automated Customs System module which is used to identify high risk cargo and to apply more intensive examinations to it. |
| Cargo Tonnage |
The weight of a shipment or of ship's total cargo expressed in tons. |
| Carnet |
Called an "A T A Carnet". An international customs document which incorporates guarantees to be used in lieu of Customs documents to enter goods into certain countries temporarily without paying import duty or posting bonds. |
| Carriage Of Goods By Sea Act Of 1936 |
(USA) The basic law of ocean shipping in the U.S. Among other provisions, it establishes parameters for the carrier's liability for loss or damage to cargo. |
| Carrier |
A legal entity that is in the business of transporting passengers or goods for hire. |
| Carrier's Certificate |
(USA) A document issued by a carrier providing the particulars of a shipment and designating to customs who may make a customs entry on that shipment.. |
| Cartel |
A group of independent producers which regulates production, pricing, and marketing by members to maximize market power and limit competition. |
| Cash Against Documents (CAD) |
A term used in collections supported by shipping documents which are released to the buyer only against payment. Same as Documents Against Payment (D/P). |
| Casus Major |
An extraordinary casualty such as a fire, shipwreck etc. |
| Category Groups |
A classification system which groups various products for statistical, export control or quota control purposes. |
| Caveat Emptor |
Let the buyer beware, which is to say the purchaser buys at his own risk. |
| Cell |
The space constructed on a ship into which one container fits. |
| Census Interface |
(USA) An Automated Customs System module that captures trade data for the U.S. Bureau of Census. |
| Central Bank |
An institution with the sole right to issue bank notes and power to dictate the monetary policy for a currency zone. |
| Certificate of Inspection |
A certificate issued by an independent third party verifying the condition of cargo or of property. |
| Certificate of Manufacture |
1. A certificate sometimes required from a manufacturer to attest that goods have been manufactured according to the contract; for example, to support payment under a letter of credit.
2. (USA) A form required to support a claim for duty drawback based on manufacture in the United States. |
| Certificate of Weight |
A document certifying to the weight of a shipment. |
| Certification |
1. Official proof of authenticity.
2. The formal assertion of some fact in writing. |
| Cession of Goods |
A surrender or assignment of goods for the benefit of one's creditors. |
| CFR (Cost and Freight ...named port of destination) |
The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. (Note: this Incoterm, CFR, has replaced the term C&F which has been in common usage) |
| Chargeable Weight |
The weight or volume of a shipment used in determining freight charges. |
| Charter Service |
Temporary hiring of an aircraft or vessel for the transportation of cargo or passengers. |
| Chartered Ship |
A ship leased for a stated time, voyage, or voyages. |
| Chassis |
1. A special trailer or undercarriage on which containers are moved over the road.
2. The undercarriage of a vehicle. |
| CIF (Cost, Insurance and Freight... named port of destination) |
The seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage. |
| CIP (Carriage and Insurance Paid To...named place of destination) |
The seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller pays the insurance premium and is only required to obtain minimum coverage. |
| Circa |
Same as "about" and "approx."; terms which when used in a letter of credit are construed to allow a difference not to exceed 10% more or 10% less than the monetary amount, or the quantity, or the unit price. |
| City Terminal Service |
A service provided by some airlines that involves receiving or delivering cargo at terminals in-town instead of at airports. |
| Claim |
1. A demand of payment.
2. In insurance, a demand for payment of money or property as the result of an insured loss..
3. In transportation, a demand for return of overpaid charges. Also, a demand for reimbursement of losses due to loss or casualty to cargo or failure to deliver. |
| Classification |
The categorization of merchandise:
In transportation - to permit determination of freight rates within a tariff.
In customs - to permit the determination of duty status within the Harmonized Tariff Schedules. |
| Claused Bill of Lading |
A notation on a bill of lading which denotes a deficient condition of the goods or packaging, or other annotated conditions modifying the printed conditions on the Bill Of Lading. |
| Clean Bill of Lading |
A bill of lading issued by a carrier for goods delivered in "apparent good order and condition" - bearing no notations or added clauses which may limit the liability of the carrier. |
| Clean Draft |
A draft with no commercial documents attached. |
| Clearance |
1. The completion of governmental requirements so that a carrier may arrive in a port and unlade cargo and passengers, or may lade cargo and passengers and depart for a foreign destination.
2. The accomplishment of the customs formalities necessary to allow goods to be imported or to be exported. |
| Closed-End Transaction |
A credit transaction with a fixed amount of time for repayment. |
| Coastal Trade |
Trade by vessel between the ports of one nation. |
| Collar |
An agreement that puts upper and lower limits on the interest rate of a financial instrument or on the price of something, and through this device limits the possible amount of loss or gain from the rise or fall of interest or price of the thing "collared" |
| Collect Charges |
1. Transportation practice where the receiver of the goods pays the freight and charges to the carrier.
2. Collection practice where the buyer is expected to pay the bank charges for handling the collection. |
| Collect on Delivery (C.O.D.) |
A service where the purchase price of a shipment is collected by the carrier upon delivery of the shipment and subsequently paid to the shipper. |
| Collecting Bank |
A bank involved in the collection process. In this process if presentation is made to the drawee, it becomes also "the presenting bank." |
| Collection |
1. The presentation for payment of an obligation and the payment thereof.
2. A gathering of similar goods. |
| Collection Letter |
Customer's written instructions to a bank on how to handle a collection. Many banks have an instruction form for use instead of a letter. |
| Collection Papers |
Drafts, invoices, printed lists, documents which relate to a shipment, and other similar instruments presented to the designated buyer/ payee to obtain payment or acceptance. |
| Collection System |
(USA) In U.S. Customs, it is the process that controls and accounts for payments collected by the agency. |
| Combination Aircraft |
An aircraft capable of transporting both cargo and passengers on the same flight. |
| Combined Bill of Lading |
A bill of lading covering a shipment of goods by more than one mode of transportation. |
| Combined Transport |
Consignment sent by means of various modes of transport. |
| Comity |
1. In international relations it is the recognition that one sovereignty allows within its territory to the legislative, executive or judicial acts of another sovereignty, with due regard to the rights of its own citizens.
2. Courtesy, respect, and good will. |
| Command Economy |
An economic system where the decisions about allocation of resources, production, distribution and consumption are made by a central government authority instead of being determined by market forces. An example was the Nazi economy. |
| Commercial Bank |
In the USA, a bank that is authorized to accept demand deposits. It may also receive time deposits, make loans, engage in trust services, issue letters of credit, accept and pay drafts, rent safe deposit boxes and engage in many other similar activities. |
| Commercial Invoice |
A document which details the transaction between a seller and a buyer. It minimally should give the name and address of the seller and of the buyer, the date of the sale, a description of the goods sold, the quantity, the unit price, the terms of sale, and the total money amount due. If it is an invoice between buyer and seller of different countries it should also indicate the kind of currency. |
| Commercial Letter of Credit |
An instrument by which a bank substitutes its credit for that of a customer to enable him to finance the purchase of goods or to incur other commitments. The bank issues a letter (or document) on behalf of its client to a supplier and agrees to pay them upon presentation of documentary evidence that the supplier has performed in accordance with the terms of the letter of credit. |
| Commercial Officers |
Embassy and consular officials who assist their country's citizens and businesses in a foreign country through arranging appointments with local business and government officials and providing counsel on local trade regulations, laws, and customs. |
| Commercial Paper |
Negotiable instruments used in commerce. Usually they are short term, unsecured, promissory notes issued by highly rated entities and are traded on the money markets. |
| Commercial Set |
The documents required to evidence the shipment of goods; usually includes an invoice, packing list, and bill of lading; may include certificate of origin, certificate or policy of insurance, and other special documents. |
| Commercial Treaty |
An agreement between two or more countries that establishes the conditions under which business may be conducted between their citizens within their countries.. |
| Commingling |
1. The packing or mingling of various goods subject to different rates of duty so that the value and quantity of each class of goods cannot be readily determined.
2. To combine funds or properties into a common mass. |
| Commission |
1. A board or committee officially appointed to perform certain functions or exercise certain jurisdiction of a public nature.
2. The amount paid by a principal to an agent for their role in the completion of a transaction involving the sale of goods or services.
3.The authority under which one acts, transacts business or negotiates for another. |
| Commodity Code |
The system of identifying a commodity by an assigned number. |
| Commodity Rate |
The rate applicable to shipping a given commodity between points. |
| Common Point |
1. A location serviced by two or more transportation lines.
2. A significant point over which aircraft fly and report to the air controllers. |
| Competitive Rate |
Rate determined by one transportation line to compete with the rate of another transportation line. |
| Compradore |
An agent in a foreign country employed by a domestic businessman to facilitate transactions with local businesses within the foreign country. |
| Concealed Damage |
Damage to the contents of a package which is not evident from the appearance of the exterior of the package. |
| Concealed Loss |
1. Loss from a package bearing concealed damage.
2. Damage, loss, or shortage of goods within a package which is not apparent from its exterior condition. |
| Confirming Bank |
A bank which engages to honor a letter of credit issued by another, or engages that such letter of credit will be honored by the issuer or by a third bank. |
| Connecting Carrier |
A carrier which has direct physical connection with another carrier or forms a connecting link between two or more carriers. |
| Consignee |
The person or firm named in a freight contract to whom goods have been shipped or turned over for care. |
| Consignment |
1. Goods or property sent by the aid of a carrier from one person (the consignor) to another (the consignee).
2. Entrusting of goods to another to sell as agent for the sender. |
| Consignor |
The entity that ships goods to another. On a bill of lading, the shipper. |
| Consolidated Container |
A shipping container that contains cargo from various shippers for delivery to various consignees. |
| Consolidation |
1. In transportation, the combining of smaller shipments into a single shipment that is sent to a destination point.
2.The reorganization of corporations to combine two or more into a successor corporation. |
| Consolidator |
A company that provides freight consolidation services. |
| Consular Invoice |
An invoice covering a shipment of goods, usually required to be certified by the counsel of the country for which the merchandise is destined. It may be required to be on a special form and be subject to the payment of special fees. |
| Consulate |
An office of a country within another country (often there are several, located in the larger commercial centers). These offices represent the commercial interests of the citizens of their country. |
| Consumer Goods |
Any goods produced for the express use of individuals rather than the production or manufacturing of other goods. |
| Consumption Entry |
(USA) A "consumption entry" is the filing with Customs in proper form of an "entry summary for consumption" on imported goods , and payment of estimated duties, taxes, and fees, if any, resulting in the release of the goods by Customs. When the release is unconditional, the importer may dispose of the goods. |
| Container |
A reusable, rigid, exterior "box" in which merchandise is shipped by air, vessel, truck, or rail. |
| Container Freight Charge |
Charge made for the packing or unpacking of cargo from ocean freight containers. |
| Container Load |
A shipment of cargo that, according to weight or volume, will fit a standard container. |
| Container on Flatcar |
A container without wheels put on railcars for transport inland, |
| Container Part Load |
A shipment of cargo that according to weight or volume will not fill a standard container on its own but is expected to be shipped in a container, if necessary with other shipments which are also too small to take up a full container themselves. |
| Container Vessel |
An ocean going vessel designed specifically to handle the loading, carriage and removal of standard freight containers. |
| Contraband |
Any product that a nation has made unlawful to possess, produce, transport, import, or export. |
| Contract Carrier |
Excluding common carriers, any person who under contract will transport passengers or goods for agreed upon compensation. |
| Convertibility |
The attribute of being exchangeable, such as a currency freely able to be exchanged for another, or as preferred stock or bonds to be exchanged for common stock. |
| Core Inflation |
The basic level of inflation over a period of time as opposed to temporary fluctuations. |
| Corporate Dumping |
The practice of exporting banned or out of date goods to a foreign market where restrictions on that product are not as severe. |
| Cost Plus |
A pricing method where the purchaser agrees to pay the production cost of the good plus a fixed percentage to the seller for profit. |
| Countervailing Duties (CVD) |
(USA) Duties which are assessed, in addition to regular duties, to offset the effects of foreign subsidies or bounties upon the export of merchandise to the United States which has been found to materially injure, or threaten material injury to, an American industry. |
| Country of Departure |
The country from which a shipment of goods, a carrier, or a passenger has or is scheduled to depart. |
| Country of Destination |
The country that is the ultimate destination for a shipment of goods. For a carrier, it is the country in which it intends to complete its current voyage or flight. |
| Country of Dispatch |
The country from which a cargo is shipped. |
| Country of Export Destination |
The country to which goods are going in order to be consumed, further processed, or manufactured, as presumed by the shipper at the time of exportation. |
| Country of Exportation |
The country from which goods are shipped with intention to separate them from the mass of goods in that country. |
| Country of Origin |
The country in which goods were produced, mined, grown or manufactured. |
| Country Risk |
The financial risks of a transaction which relate to the political, economic, or social instability of the country of the debtor, and is over and above the credit risk of the borrower. |
| Courier |
1. Attendant who accompanies shipments.
2. Express company which handles shipments of documents and small packages on an expedited basis and may or may not have the shipments accompanied by attendants, |
| CPT (Carriage Paid To...named port of destination) |
The seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. |
| Customs |
The government service which is responsible for the administration of Customs law and the collection of duties and taxes relating thereto, and which has responsibility for the application of other laws and regulations relative to the importation , transit, and exportation of goods. |
| Customs Electronic Bulletin Board (CEBB) |
(USA) Customs Electronic Bulletin Board (CEBB): An electronic bulletin board accessible by computer, sponsored by U.S. Customs, providing the trade community with up-to-date information, clearance requirements, and operation instructions. |
